Harris Associates is honored to announce that the Oakmark Equity and Income Fund (Institutional) is a LSEG Lipper Fund Award (USA) 2024 winner for best mixed-asset target allocation moderate fund over three years.
The merit of the winners is based on objective, quantitative criteria. This year, Oakmark Equity and Income was ranked number one out of 127 eligible funds over the three-year period ending November 30, 2023.
The Oakmark Equity and Income Fund, which was incepted in November of 1995, seeks to protect capital during market downturns, compound capital at an attractive rate over time and deliver a competitive income stream for investors. The Fund is primarily made up of U.S. equity and fixed-income securities and utilizes a disciplined, fundamental value investment approach. Colin Hudson, Adam Abbas, Mike Nicolas and Alex Fitch are the co-portfolio managers.
“We are honored that the Oakmark Equity and Income Fund is the recipient of the LSEG Lipper Fund Award for its three-year performance. This recognition honors the Fund’s long-term investment outlook, strength and depth of our investment team, and dedication to our shareholders,” said Colin Hudson, Adam Abbas, Mike Nicolas and Alex Fitch.
The LSEG Lipper Fund Awards, granted annually, highlight funds and fund companies that have excelled in delivering consistently strong risk-adjusted performance relative to their peers. The LSEG Lipper Fund Awards are based on the Lipper Leader for Consistent Return rating, which is an objective, quantitative, risk-adjusted performance measure calculated over 36, 60 and 120 months. The fund with the highest Lipper Leader for Consistent Return (Effective Return) value in each eligible classification wins the LSEG Lipper Fund Award. For more information, see lipperfundawards.com. Although LSEG Lipper makes reasonable efforts to ensure the accuracy and reliability of the data used to calculate the awards, their accuracy is not guaranteed.
The information, data, analyses, and opinions presented herein (including current investment themes, the portfolio managers’ research and investment process, and portfolio characteristics) are for informational purposes only and represent the investments and views of the portfolio managers and Harris Associates L.P. as of the date written and are subject to change and may change based on market and other conditions and without notice.
Certain comments herein are based on current expectations and are considered “forward-looking statements”. These forward looking statements reflect assumptions and analyses made by the portfolio managers and Harris Associates L.P. based on their experience and perception of historical trends, current conditions, expected future developments, and other factors they believe are relevant. Actual future results are subject to a number of investment and other risks and may prove to be different from expectations. Readers are cautioned not to place undue reliance on the forward-looking statements.
The Oakmark Equity and Income Fund invests in medium- and lower-quality debt securities that have higher yield potential but present greater investment and credit risk than higher-quality securities. These risks may result in greater share price volatility. An economic downturn could severely disrupt the market in medium or lower grade debt securities and adversely affect the value of outstanding bonds and the ability of the issuers to repay principal and interest.
The Oakmark Equity and Income Fund’s portfolio tends to be invested in a relatively small number of stocks. As a result, the appreciation or depreciation of any one security held by the Fund will have a greater impact on the Fund’s net asset value than it would if the Fund invested in a larger number of securities. Although that strategy has the potential to generate attractive returns over time, it also increases the Fund’s volatility.
Oakmark Equity and Income Fund: The stocks of medium-sized companies tend to be more volatile than those of large companies and have underperformed the stocks of small and large companies during some periods.
Investing in value stocks presents the risk that value stocks may fall out of favor with investors and underperform growth stocks during given periods.
